Changes expected to Cartels Bill

Earlier this year we sent an update on the Cartel Amendments to the Commerce Act in our article: Overview for Franchisors. Hon. Paul Goldsmith, Minister for Commerce and Consumer Affairs has now confirmed that the Cartels Bill will be amended to clarify how the restraint of trade provisions apply to franchise agreements. This followed an application to the Minister by the Franchise Association of New Zealand (FANZ) Legislation Subcommittee.

Darryl King is a member of the FANZ Legislation Subcommittee and drafted FANZ's submission to the Ministry.

The full FANZ announcement is below or you can view it on the FANZ website.

Announcement by FANZ about the Commerce (Cartels and Other Matters) Amendment Bill (the Cartels Bill)

Earlier in the year, FANZ wrote to the Ministry of Business, Innovation and Employment (MBIE) to draw the Ministry’s attention to the fact that otherwise legitimate restraints of trade relating to a collaborative activity (ie, a franchise) will be prohibited after the end of that collaborative activity (ie, after the termination of the franchise agreement). FANZ’s Legislation Subcommittee was of the view that these proposed provisions would materially and adversely affect many franchised businesses.

FANZ is delighted to announce that the Commerce and Consumer Affairs Minister,Mr Paul Goldsmith, has agreed to amend the Cartels Bill to make clear how the Cartels Bill will relate to restraint of trade provisions in franchising agreements.

FANZ wishes to express its sincere thanks to MBIE, the Minister and Senior Policy staff for dealing with this matter so promptly and effectively.